How baby boomers are spending big in retirement
Baby boomers are not going gently into that good night, redefining what it means to retire and grow old.
According to the 2021/22 edition of The Boomer Guide (commissioned by Starts at 60) rather than slowing down, over 60s are looking to spend their money and live it up.
"The advance of 'old age' has been slowed by the Baby Boomers," says demographer Bernard Salt.
"The Baby Boomer's idea of retirement-oops, I mean 'idea of post-work lifestyle'-is to remain firmly in demand. Perhaps working one day a week for commercial purposes. Perhaps doing a bit of volunteering."
More than a quarter of all Australians are over 60, and they boast 46% of Australia's disposable income and 50% of our private wealth.
But don't expect Boomers to hoard it for their kids' inheritance.
Over two-thirds (64%) of all new car purchases are by over 60s, while 55% of all leisure travel spending is attributed to the age group.
Open borders can't come soon enough for the boomers, who seem to have itchy feet during lockdown. Almost two thirds of survey respondents said they plan to travel domestically within the next three years (57.9%), and 20.2% are itching for to travel independently internationally.
Despite being spenders, over 60s are still discerning about their consumer choices.
"While over-60 Australians outspend millennials in entertainment, auto, health, travel and almost every other category, 94% dislike the way brands, organisations and marketers communicate with them and 78% are willing to switch brands for a better deal or good value," says Starts at 60 CEO Rebecca Wilson.
The research found that 92% actively seek out a good deal on products they plan to buy, while 78.9% are prepared to switch brands if they find a better deal.
Reflecting the high net worth of the baby boomer generation, 28% own a home worth more than $750,000. While 52.2% say that they're happy with their home, 11.4% are considering downsizing.
"Whatever is to be the way of the post-pandemic era, of one thing we can be certain; these years will be redefined by a new generation of what we now call 'retirees' who will work assiduously at recreating life's last stanza, final act, closing statement, retirement years, with a fierce determination to do things differently, very differently," says Salt.
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